The Irish Property Owners’ Association (IPOA ) has unveiled its pre-Budget 2024 submission, aimed at addressing the critical housing emergency which continues to deteriorate nationwide.
In tandem with its 2000 membership, the organisation has developed a targeted set of recommendations that focus on promoting a more favorable tax and regulatory environment for property owners, while ensuring the continuity of the availability of rental housing stock. This, they say, will “encourage the retention of landlords in the residential property market while ensuring adequate availability of stock for rent.”
The organisation’s submission follows extensive engagement with its members, who revealed that the main reason property owners are exiting the market is the combination of penal tax and regulatory measures. Among their key proposals are:
• A 25% rate of tax on residential rental income inclusive of the Universal Social Charge (USC ) and Pay-Related Social Insurance (PRSI ). This innovative approach to taxation is designed to encourage current private investors and homeowners to remain active in the property market and stimulate new investment in the rental sector.
• An extension of Capital Gains Tax (CGT ) relief to property owners, allowing them to benefit from reduced taxation when eventually disposing of the property. The IPOA advocates for such tax relief measures for property owners who commit to retaining their rental properties for a minimum of a seven-year period thereby ensuring stability in the rental market.
• A reduction in Capital Acquisitions Tax (CAT ) on the inheritance of residential investment properties. The burdensome CAT payments often force families to sell inherited properties to cover the tax liability, resulting in further losses of rental housing stock.
The IPOA firmly believes that property owners are willing to remain active in the rental market if the measures included in their pre-Budget submission are earnestly considered. The association is calling on the government to implement these fiscal policies as a priority, to enable property owners to play a pivotal role in alleviating the severe rental crisis currently affecting our country.
